Lord McKenzie of Luton: Mr right honourable friend the Paymaster General (Dawn Primarolo) has made the following Written Ministerial Statement.
	HMRC has today reached a settlement of its claim for compensation from Electronic Data Systems Ltd (EDS) and Electronic Data Systems Corporation for the problems experienced with the IT system developed by EDS to support the launch of the tax credit system in 2003 and the subsequent operation of tax credits.
	The aggregate settlement is £71.25 million (seventy-one million, two hundred and fifty thousand pounds) including an up front payment and payments of additional amounts over time. Details of the settlement are commercially sensitive and therefore bound by a legal confidentiality agreement as is normal in agreements of this nature.
	I have written to the chairman of the Treasury Committee to inform him of this settlement and David Varney, as chairman of HMRC, has written in similar terms to the chairman of the Public Accounts Committee and the Public Administration Committee. Copies of all three letters have been placed in the House of Commons Library.